Rackley v. Rackley (In re Rackley)

502 B.R. 615
United States Bankruptcy Court, N.D. Georgia·Decided October 18, 2013·No. Bankruptcy No. 12-64924; Adversary No. 12-5405·Published·Cited by 16 cases

Opinion

ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT AND DENYING DEFENDANT’S MOTIONS FOR SUMMARY JUDGMENT

JAMES E. MASSEY, Bankruptcy Judge.

In this adversary proceeding, Plaintiffs seek a determination of the dischargeability of debts owed to each of them by Defendant pursuant to the Final Order on Attorney’s Fees and Expenses of Litigation entered by the Superior Court of Cobb County, Georgia on August 5, 2011 in Rackley v. Rackley (Civil Action File No. 10-11719-28) (the “Final Fee Order”). Plaintiffs and Defendants filed motions for summary judgment. The Final Fee Order is attached to the complaint and is the source of facts on which Plaintiffs base their motion. Complaint, Doc. No. 1, Part 2.

A. Facts Found by, and Holdings of, the Superior Court in the Final Fee Order.

1. Origin of Dispute. Plaintiff Kevin Rackley is the former spouse of Defendant Lezlie Noelle Rackley; they were divorced in 2009. Complaint, Doc. No. 1, Part 2, p 4. Following the divorce, Mrs. Rackley had custody of their only child, and Mr. Rack-ley had “parenting time.” Id.

The Final Fee Order catalogued the events leading to the litigation between the Rackleys over child custody and to the appointment of a guardian ad litem for the child. After their divorce became final, “it became emotionally difficult for [Mrs. Rackley] to allow [Mr. Rackley] to have parenting time -with [the child]. Id. at 4. When teachers in an after-school program told Mrs. Rackley that the child “was observed playing with toys in a sexual manner,” Mrs. Rackley questioned her child concerning happenings in Mr. Rackley’s home and permitted her “boyfriend” to question the child. Id. The Superior Court found that Mrs. Rackley failed to disclose her concerns to Mr. Rackley as required by a separation agreement and instead began a quest to prove that Mr. Rackley had engaged in sexual misconduct involving the child. Id. at pp. 4-12. The son is a special needs child with a below average IQ, who had been diagnosed with expressive and receptive language disorder. Id. at p. 8.

The Superior Court found that Mrs. Rackley had embarked on a “clear strategy to build litigation where evidence did not exist,” despite being told by multiple professionals that Mr. Rackley “was not a threat to [the child]” and that they would not pursue the case she was trying to make. Id. at 12-13. Further, Mrs. Rack-ley sought to have the Cobb County Police investigate Mr. Rackley but was rebuffed by the investigating detective. Id. at pp. 6-7.

In 2010, Mrs. Rackley obtained an ex parte order from the Cobb County, Georgia Superior Court suspending Mr. Rack-[620]*620ley’s parenting time and filed a petition for modification of visitation to bar him from having contact with their child. Id. at 9. Mr. Rackley responded with his own petition to modify custody. Id.

Plaintiff Sally Cannon served as guardian ad litem for the Rackleys’ child in the ensuing litigation over custody. The Final Fee Order described her appointment and her testimony as follows:

The parties agreed to the appointment of Judge Sally Cobb Cannon [of the Magistrate Court of Fulton County, Georgia] as the Guardian ad Litem, which Mother denied at the attorney’s fees hearing despite the fact that her suggestion of Judge Cannon to serve as the Guardian was documented in the Court’s record. The Guardian found Mother to be unreliable and dishonest and recommended a total modification of custody in favor of Father with Mother having supervised parenting time. The Court finds the Guardian’s testimony to be credible, and her evaluation was thorough, complete and reliable.

Id. at p. 10.

2. Sanctions. After a trial lasting more than two days, the Superior Court found that there was no evidence to support Mrs. Rackley’s allegations. In the Final Fee Order, the Court determined that Defendant and her attorney, Laura E. Austin, had prosecuted claims against Mr. Rackley that were frivolous and lacked substantial justification, id. at 4-13, and that Defendant and her counsel had engaged in conducts that unnecessarily expanded the proceedings and increased attorney’s fees and litigation expenses, id. at 14-15.

The Superior Court found that Mr. Rackley had incurred legal fees and litigation expenses of (1) $69,226.32 for the period December 3, 2010 through April 21, 2011 and (2) $53,335.09 for the period April 22, 2011 through June 3, 2011 and that those fees and expenses were reasonable and necessary. Id. at 16-19. Based on those findings, the Superior Court held that pursuant to O.C.G.A. § 9-15-14(b), Mr. Rackley was entitled to an assessment of those fees and expenses jointly and severally against Mrs. Rackley and Ms. Austin. Id.

O.C.G.A. § 9 — 15—14(d) provides in part: “Attorney’s fees and expenses of litigation incurred in obtaining an order of court pursuant to this Code section may also be assessed by the court and included in its order.” Mr. Rackley had incurred attorney’s fees and litigation expenses of $8,500 for preparing and prosecuting his motion to assess fees and expenses under this section, of which the Superior Court assessed $8,000 against Mrs. Rackley. Id. at 20-21.

The debt for these awards totaling $130,561.14 in the aggregate was not made pursuant to statutes dealing with support, as contrasted with other awards made in the Final Fee Order. The Superior Court made no finding that the sanctions imposed were for the support of Mr. Rackley or the child.

3. Modification of Custody. The Superior Court granted Mr. Rackley’s petition to modify custody and child support, giving Mr. Rackley “sole legal and sole physical custody” of the child. Id. at 11-12. It can be inferred from the Superior Court’s Final Fee Order that the change in custody was necessary for the well-being of the child.

The Superior Court awarded to Plaintiff Rackley and against Defendant the sum of $2,474.15 under O.C.G.A. § 19-9-3 with respect to legal fees and litigation expenses he had incurred in seeking modification of custody and child support. Id. at 20. In making this award, the Superior Court weighed the financial capacities and [621]*621resources of the parties, as required by O.C.G.A. § 19-6-15, which O.C.G.A. § 19-9-3(g) makes applicable. Id.

4. Guardian Ad Litem. The Superior Court found that Ms. Cannon as guardian ad litem “worked tirelessly and diligently on behalf of’ the child. Id. at 21. It awarded to Ms. Cannon and against Defendant the sum of $11,865.00 under O.C.G.A. § 19-9-3 as her fee for services rendered as guardian ad litem. Id. at 21-22. In making this award, the Superior Court weighed the financial capacities and resources of the parties, as required by O.C.G.A. §

Rackley v. Rackley (In re Rackley), 502 B.R. 615 (Ga. 2013).

502 B.R. 615 (Rackley v. Rackley (In re Rackley)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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